Price and Product-Mix Decisions Under Different Cost Systems

ISBN-13: 9783658193201 / Angielski / Miękka / 2017 / 132 str.

Philipp Plank

Opis

Using simulations, a benchmark firm (first-best solution) perfectly allocating cost to products is compared to firms implementing heuristic cost-allocation schemes (second-best solution) to identify the profit gap resulting from decisions based on limited information.

Spis treści

About the adequacy of full-costing for decision making.- From cost system design to pricing and portfolio decisions.- About the adequacy of simulations in management accounting research.- A theory review of relevant simulation models in management accounting.- Price and product-mix decisions under different cost systems.- Extended decision model incorporating cost-stickiness. 

O autorze

Philipp Plank received his doctoral degree from the University of Cologne under the supervision of Prof. Dr. C. Homburg. He now works as a project manager und data scientist.

Blurb

​Philipp Plank analyses the question, what drives the quality of cost-systems and is the quality of cost-systems directly and at best positively related to the firms’ performance. In other words, is it worth investing in complex cost allocation systems or are there environmental and/or production settings in which less enhanced systems perform adequately. Using simulations, a benchmark firm (first-best solution) perfectly allocating cost to products is compared to firms implementing heuristic cost-allocation schemes (second-best solution) to identify the profit gap resulting from decisions based on limited information. Into this discussion, the idea of cost-stickiness is integrated, thereby indicating a new planning approach.

Contents

• About the adequacy of full-costing for decision making
  
• From cost system design to pricing and portfolio decisions
  
• About the adequacy of simulations in management accounting research
  
• A theory review of relevant simulation models in management accounting
  
• Price and product-mix decisions under different cost systems
  
• Extended decision model incorporating cost-stickiness
  

Target Groups

• Academics and students in the fields of planning and accounting
  
• Practitioners in controlling
  

The Author

Philipp Plank received his doctoral degree from the University of Cologne under the supervision of Prof. Dr. C. Homburg. He now works as a project manager und data scientist.